Deciding to purchase an existing practice can be an exciting prospect and open doors for new opportunities. Regardless of whether you are an established practice or a new dentist, the acquisition process can be lengthy and complex. It is important that you weigh all the pros and cons of this potential investment. Remaining well informed during the process is your best defense against making a poor choice that could end up costing you more money. We have included some considerations to keep in mind when looking to purchase a practice. For more guidance in practice acquisition, finances, or management, contact Schiff and Associates.
Acquisition is Just the Beginning
Changes are going to be necessary. Even a new, modern, and technologically advanced practice will require some renovations or changes to make it match your branding and practice culture. This especially holds true for older practices or ones that do not meet your standards. It is important to consider the costs involved in renovating, modernizing, and updating your new practice. A great deal on a building may be dampened if you end up paying twice as much to get it patient-ready.
Assess the Assets
It is always best to have a professional appraisal of the practice you are acquiring before you commit to purchase it. The appraisal might include everything from the physical construction quality of the building to the usability of existing furniture and even the functionality of existing equipment. It’s important to understand exactly what is included in your potential purchase and to make sure it’s worth the investment.
Don’t rush to buy any practice without considering the reputation and standing it has in the community. Poor patient retention rates, negative online reviews, and a bad reputation in the community are important hurdles that you will need to overcome. While it’s not impossible to create a new reputation for your new practice, it will require greater effort on your part to establish separation from the previous ownership. This may result in additional marketing and branding expenses.
These tips are designed to help you think more comprehensively about purchasing a new practice. If you need advice on a potential acquisition or are simply looking for additional guidance in running your practice well, the Schiff and Associates team is here to help.
Contact us for a consultation today.